Shipping and Product
Knowledge
Global Customer Service
September 2008
Warm Up
Welcome
Self Introduction
Expectation
Introduction of the training
Ground Rules
Content
What is Shipping?
What is Trading?
Shipping Terminologies
Know Our Product
Bill of Lading
Claims and Prevention
What is Trading and Shipping ?
Topics:
Brief introduction
Containerization
Liners
Tramps
Freight Forwarders
Trading and Shipping
Demand for transport is derived from ….
the demand for other things
Creation of utilities of place
low utilities -> carriage of goods -> high utilities
The transport of goods by sea goes back ….
3000 years to the ancient Phoenicians
What is Containerization?
Containerization is a system of intermodal freight
transport using standard ISO containers that can be
loaded and sealed intact onto container ships, railroad
cars, planes and trucks.
ISO Standard ?
Five common standard lengths, 20-foot (6.1 m), 40-foot
(12.2 m), 45-foot (13.7 m), 48-foot (14.6 m), and 53-foot
(16.2 m). United States domestic standard containers
are generally 48-ft and 53-ft (rail and truck).
More on our Equipment Fleet later on !
Some major events of containerization
.
1780s ‘Loose boxes’ were used to containerize coal, e.g. at
Bridgewater Canal
1830s Small sized containers were carried by railroads and
could be transferred to trucks or ships, on several
continents
1840s
Iron boxes were in used
1900s Closed container boxes were designed for movement
between road and rail
1910s Similar containers were used by several railway
companies in UK
1920s Railway Clearing House in UK standardized the RCH
container
Some major events
1930s “Piggy-back” service (transporting highway freight trailers
on flatcars) was introduced by Chicago Great Western
Railway in US
1950s US Department of Defense standardized an 8’x8’ cross
section container in multiples of 10’ lengths for military use
which was rapidly adopted for shipping purposes
1951
The first vessels purpose-built to carry containers began
operation in Denmark
1956
Container shipping industry started when Malcom Mcclean
put 58 containers aboard “Ideal X” from Newark to Houston
Advantages and Disadvantages
of Containerization
Group Discussion
Advantages:
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Standardization
Door to door service
No intermediate handling at terminals
Less risk of cargo damage and pilferage
More favourable cargo premiums
Substantial labour savings
Less packing needed
Faster and reliable transit
Less freight costs and through rates
Through documentation (B/L)
Ports of call rationalization
Fleet rationalization
TOTAL QUALITY SERVICES
Disadvantages:
• Capital intensive
• Not all merchandises suit the restrictive
containerized unit
• Not all trades and exporters need high
capacity of containers
• Trade imbalance and seasonality lead to
ineffective container moves
Liners
• Vessels on regular scheduled service
• Scheduled dates
• Fixed routing to groups of ports
• Cargo space to all shippers
• No matter the vessels full or not
• Capacity and speed varies
Tramps
• Not on fixed sailing schedule
• Trades in all parts of the world in search of
cargo
• Spot markets
• Primarily bulk cargo, e.g. coal, timber, grain,
sugar, etc
• Shiploads
• Majority seasonal
Bulk carriers are generally operated on
tramp service.
Freight Forwarders
• Transport arrangement of all kinds of goods
• Across international frontiers
• Coordination of various forms of transport
• Ancillary activities, such as documentation, customs
clearance, booking cargo space, packing, warehousing, etc
• Extensive knowledge
Major Organizations:
1. IMO – International Maritime Organization
International standards to regulate shipping - which can be adopted and accepted by all.
The first maritime treaties date back to the 19th century.
Later, the Titanic disaster of 1912 spawned the first international safety of life at sea - SOLAS convention, still the most important treaty addressing maritime safety.
The Convention establishing the International Maritime Organization (IMO) was adopted in Geneva in 1948
and IMO first met in 1959. IMO's main task has been to develop and maintain a comprehensive
regulatory framework for shipping and its remit today includes safety, environmental concerns, legal
matters, technical co-operation, maritime security and the efficiency of shipping.
International Maritime Dangerous Goods Code (IMDG Code – first adopted in 1965)
International Safety Management Code (ISM Code – 1993)
World Maritime University in Malmö, Sweden, which opened in 1983
The IMO International Maritime Law Institute, in Malta, provides specialist year-long training courses for
maritime lawyers.
2. FMC – Federal Maritime Commission
An independent regulatory agency, established in 1961, responsible for the
regulation of oceanborne transportation in the foreign commerce of the
U.S. The principal statutes or statutory provisions administered by the
Commission are: the Shipping Act of 1984, the Foreign Shipping Practices
Act of 1988, section 19 of the Merchant Marine Act, 1920, and Public Law
89-777.
• Monitors activities of ocean common carriers, marine terminal operators, conferences, ports, and ocean
transportation intermediaries
• Maintains a trade monitoring and enforcement program designed to assist regulated entities in achieving
compliance
• Monitors the laws and practices of foreign governments
• Enforces special regulatory requirements applicable to ocean common carriers
• Processes and reviews agreements and service contracts
• Reviews common carriers’ privately published tariff systems for accessibility and accuracy
• Others ……..
3. ICC (Europe) – International Chamber of Commerce
•
Set up in 1919 with headquarter in Paris
•
Focus on business development, government contact, coalition with UN, UCP regulations,
trade standards and rules, etc.
4. ICS – International Chamber of Shipping
•
Headquarter in London
•
Focus on international trade association, ship owners, maritime affairs, shipping policies,
legal and technical matters, etc
5. WSC - World Shipping Council
•
Headquarter in Washington, DC and Belgium
•
Focus on liner shipper industry, international transportation, working with government to
resolve transportation problems, new projects on transportation infrastructure, etc.
6. WCO - World Customs Organization
•
Headquarter in Belgium
•
An inter-governmental organization
•
Focus on global customs coordination and affairs
•
Has 173 members covering 98% of international trade
7. CMI - Comite Maritime International (An international
committee of maritime lawyers)
•
Setup in 1897 with Headquarter in Antwerp, Belgium
•
The oldest international organization in maritime field
•
Focus on establishment and structural relationship of national association on maritime laws,
codification and unification of international maritime laws, etc
8. C-TPAT – Customs-Trade Partnership Against Terrorism
•
Post 9/11 environment
•
Developed by U.S. Customs and Border Protection (Customs) and the American
International trade community
•
Security in the Supply Chain
•
President’s Strategy for Homeland Security
International Trade Flow
• Contracts
• Incoterms / Delivery Terms
• Payment Method
• Documentation for Export and Import
• Triangle Business
• Customs Activities
CONTRACTS
• Contract between Seller and Buyer = Sales Contract
• Contract between Shipper and/or Consignee and Carrier =
Contract of Carriage
Contract of Sales
Seller/
Shipper
Buyer/
Consignee
Incoterms (International commercial terms of
sales)
• Incoterms is a set of standardized definitions commonly used
in international trade
• Correlative obligation of sellers and buyers for delivery of
goods under sales contracts
• ICC published the 13 incoterms 2000 on 1st Jan 2000
• Departure terms e.g. EXW (ex-work)
• Arrival terms e.g. DDP (Delivery duty paid), DDU (Delivery
duty unpaid)
• Shipment terms e.g. FOB (Free on board), CIF (Cost,
Insurance and Freight)
•
More Information : http://www.jus.uio.no/lm/icc.incoterms.1990/doc.html#26
The only term where the
exporter makes the goods
available at his own premises
to the buyer
Terms where the exporter
is responsible to deliver
the goods to a carrier
named by the buyer
Terms where the exporter is
responsible for contracting and
paying for carriage of goods, but
not responsible for additional cost
or risks of loss or damage to the
goods once they have been
shipped
Terms where the exporter
is responsible for all costs,
risks associated with bringing
the goods to the place of
destination
Seller & Buyer Responsibilities & Charges
3. Export customs
6. Main carrier,
clearance.
4. Unloading of goods at main
2. Pre-carriage (pick up)
1. Loading of goods to pick
up vehicle at shipper’s
premises.
1
Seller's
premises
at origin
2
carrier’s point of departure.
5. Loading at main carrier’s
point of departure.
3
5
point of arrival.
10. On carriage (delivery)
11. Unloading at consignee’s
premises
10
6
4
9. Loading at main carrier
mode of
transport.
7. Unloading at
main carrier’s
point of arrival
8. Import
customs
clearance.
7
8
9
11
Buyer's
premises
at
destination
Seller & Buyer Responsibilities & Charges
EXW – Place a vertical bar to identify where carriage, risks &
costs transfer to the buyer.
6
1
Seller's
premises
at origin
2
3
4
5
10
7
8
9
The seller fulfills the obligation to deliver when the
goods are made available at the seller’s premises.
the buyer bears all costs and risks involved in taking
the goods from the seller’s premises to the desired
destination. This term thus represents the minimum
obligation for the seller.
11
Buyer's
premises
at
destination
3.4. Shipper’s and Seller’s Responsibilities - FOB
FOB (Free On Board…named port of shipment)
6
1
Seller's
premises
at origin
2
3
10
4
5
7
Risk, Carriage & Cost
Shipped under a rate that includes costs of
delivery to and the loading onto a carrier
at a specific point
8
9
11
Buyer's
premises
at
destination
3.6. Shipper’s and Seller’s Responsibilities - CIF
CIF (Cost, Insurance and Freight…named port of destination)
6
1
Seller's
premises
at origin
2
3
10
4
5
Risk
7
Carriage & Cost
8
9
11
Buyer's
premises
at
destination
UCP 600
• Uniform Customs and Practice for Documentary Credits
• The most successful private rules for trade
• The Complete UCP traces the history of the rules from
their inception more than 70 years ago through their
latest revision, UCP 600, which came into effect on 1
July 2007
• Widely used by Letter of Credit practitioners
• Bankers, traders, lawyers, transporters and academics
are used to refer UCP 600 for any letter of credit deals
• Covering credits, contracts, bank transactions,
documents, invoices, bill of lading, presentation, etc
Letter of Credit
A Contract of Finance
A LOC is an arrangement where a bank undertakes to pay
to a third party against presentation of certain agreed
documents.
In other words - a LOC is a way of payment as well as
guarantee.
Security that seller will not receive payment until he hands
over the documents (the B/L)
Delivery can not be made until he has been paid.
Before making any advances, the bank will check whether the
seller has complied with all conditions for granting the credit,
eg whether >>>>
>>>>
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Confirmed L/C : Seller has additional security because overseas bank
guarantee payment
Unconfirmed L/C: Seller relies on the creditworthiness of the issuing
bank.
Revocable L/C: Seller doesn’t have to be notified of amendment or
cancellations.
Irrevocable L/C: Seller will be notified of amendments or
cancellations.
Restricted L/C: Seller must present documents to a specified bank to
obtain payment.
Freely negotiable L/C: Seller can present documents to any bank and
obtain payment.
Sight L/C: Seller is paid as soon as documents have been approved
by bank.
Deferred Payment L/C: Seller will only obtain payment after a
specified date.
Time L/C: Seller receives, in exchange for documents, a time draft
with can be cashed in immediately or later
Payment Method – Letter of Credit
(split the class into two groups for games - to place the answers onto the
blanks.)
Exercise : L/C Process
Payment Method – Letter of Credit
Exercise : to place the correct steps to the L/C process
Triangle Business
The buyer at the destination deals with a middleman rather than
the actual manufacturer of the goods.
The supplier and buyer only can do business with the middleman.
(will review switch bill later on)
Buyer / Consignee
Seller / Shipper
Middleman
Triangle Trade - Transferable L/C (for game if time
permitted)
Triangle Trade - Back to Back L/C (for reference only)
Role of Customs Authorities / House
•Statistics
•Monitor
•Protection
•Revenue
The detailed formalities of customs procedure and
legislation vary from country to country.
Roles of Customs House Brokerage
• Facilitate customs clearance for cargo on behalf of
exporter or importer.
• Help client by handling documentation,
administration and financial transaction and
providing advise on customs-related issues.
• Comply with Customs requirement and other border
controls as efficiently as possible.
Simple workflow of Customs
Common Shipping Terminology:
AD Valorem
According to value, the freight is based on the value of the goods. An
Ad Valorem Bill of Lading is one where the value of the goods is
shown on the face of the document. This value is the limit of the
carrier’s liability
BCO
Beneficial Cargo Owner, referring to the importer of record, who
physically take possession of cargo at destination and does not act
as a third party in the movement of such goods
Bonded Warehouse
Warehouse approved by local customs and under bond or
guarantee of compliance with revenue laws. Goods held until duties
are paid are normally stored in a bonded warehouse
Clean Bill of Lading
A receipt for goods issued by a carrier with an indication that the
goods were received in "good order and condition," without damage
or other irregularities
FCR Forwarder’s Cargo Receipt
A non-negotiable document issued by a forwarder which will satisfy the
legal requirements of a letter of credit. Since a forwarder is not an
NVOCC it cannot issue actual bills of lading. The FCR is legally
binding upon the forwarder and is an industry standard
House B/L
Issued by a freight forwarder or consolidation covering a single
shipment, containing the names, addresses and specific description
of the goods shipped
NVOCC
Non Vessel Operating Common Carrier, a carrier issuing B/Ls for
carriage of goods on vessels which they neither own nor operate
Ro-Ro Roll on/Roll off
Vessel used for carrying cars and light trucks. Vehicles are driven on
and driven off, as opposed to being loaded with cranes or other
external equipment
VSA Vessel Sharing Agreement
A term agreement between two or more carriers in which a number of
container positions ("slots") equal in space are reserved on particular
vessels for each of the participants. The number of slots (space) on
different vessels on the same route can vary by vessel type and
direction but may also be expressed as each party's capacity use of
the vessels employed jointly.
(For more information, please refer to Intranet > Knowledge Bank >
Glossary)
Our Company and our Products
•
History / Major events
• Our Capacity
• Our Equipment Fleet
• Mainline
• Feeder and Inland Routing
Inland Table
• Competitiveness
• Country Information
MAJOR FACTS - EMIRATES SHIPPING LINE…
19th April 2006 officially opened for business.
19th April 2006 appointed Star Navigation Sdn Bhd in Malaysia , Starship Agencies
(MAL) Pte. Ltd in Singapore and PT. Maer Translindo Pratama in Indonesia to represent
the company.
21st April, 2006 launched its first service, the Indus Express (IDX), in partnership with
ZIM, SCI, LT and OOCL.
24th May, 2006 launched the Asia Gulf Express (AGX) service, in partnership with ZIM.
16th June, 2006 joined OOCL on the Middle East Asia Express (MAX) service.
24th July, 2006 joined the Hercules service, operated by NYK.
13th October, 2006 launched the Hyper Galex, in partnership with SCI and TS Line.
1st November, 2006 joined the Asia US Express (AUX) service, operated by ZIM and
Italia Maritima Spa.
26th March, 2007 joined INTTRA (INTTRA is the largest e-commerce platform for the
ocean industry)
13th April, 2007 launched two new services - the Gulf Indian-Subcontinent Africa
Service (GIA) and the Africa Far-east Asia Service (AFA), in partnership with TS Line.
25th April, 2007 acquired membership in three key conferences within the industry IADA (Intra Asia Discussion Agreement). The scope of this conference is the IntraAsia region (excluding Middle East and Indian Subcontinent and Africa).
ISDA (Indian Subcontinent Discussion Agreement). This agreement covers the
Indian-subcontinent to Asia.
MIDA (Middle East-India Discussion Agreement). The scope of this conference is
USA to Middle East and the Indian-Subcontinent.
18th January, 2008 launched the Hyper Galex II, in partnership with OOCL and TS
Line.
22nd January, 2008 joined the Mediterranean India Express (MIX) service, operated
by United Arab Shipping Company (UASC).
January, 2008 joined the North China India Express (NIX) service, operated by KMTC
and CNC.
Emirates Shipping Line’s Winning Awards and Nominations
Winning Awards:
“Best Emerging Company” award at the eigth annual Lloyd’s List Maritime Asia
Award, Kuala Lumpur, Malaysia 2006
“Best Emerging Company” award at the prestigious 2006 Asia Logistics Awards,
Singapore, 2006
“Personality of the Year” award in Seatrade Middle East & Indian subcontinent
Award, Dubai, 2007
Nominations:
“Best Shipping Line in the Container Operation category” in Seatrade Dubai International
Maritime Awards 2006
“Shipping Line of the Year” award in Supply Chain Asia Logistics Awards 2007
“Shipping Company of the Year” in Lloyd’s List Middle East & Indian Subcontinent Awards 2007
“Container Shipping Line of the Year” in Lloyd’s List Asia Awards 2007
“Shipping Company of the Year” award in Supply Chain & Transport Awards 2008
“Best Ship Liner Operator of 2008” award in Seatrade Asia Awards 2008
“Shipping Line of the Year” award in Supply Chain Asia Logistics Awards 2008
Art Container
One of the core values of Emirates Shipping
Line in being a good corporate citizen is to
provide service to the local community. The
company is therefore participating in Art
Container Project. During the next 3 years, the
art containers (37 containers) will embark on
individual journeys to different ports within the
Line’s network. They will then return to Hong
Kong.
Liners’ Capacity
Our Capacity
We are now ranked 41 with a total capacity of 26,533 Teus
and 10 chartered vessels
Vessel name
Teus nominal
Service
Emirates Freedom
3091
HGLX 1
Emirates Kabir
3108
HGLX 2
Emirates Kanako
3398
HGLX 1
Emirates Liberty
3091
HGLX 1
Emirates Marina
3091
HGLX 2
Emirates Spring
2754
HGLX 2
Emirates Wats
3292
HGLX 1
Kapitan Maslov
1726
AFA/GIA
Despina P.
1932
AFA/GIA
Ludwig Schulte
1740
AFA/GIA
Our Equipment Fleet
• Presently our company has approx 80,000 teu fleet
(including all equipment types)
• Amongst them, some 14,000teu boxes are owned (with
ESPU prefix) and the rest are leased
• Apart from Dry boxes, we have also leased some 1800
units of 40’ High Cube reefers (all are Carrier machines)
• and around 200 units of special equipment (20’/40’ open
top and flatrack)
• More Slides on Container Identification, Marking and
Code
Per record from Equipment Logistics at end July 2008
Mainlines
• In Emirates Internet website
• In Emirates Intranet - Emirates Knowledge Bank
• HGX1 - Hyper Galex 1
• HGX2 – Hyper Galex 2
• HLX - Hercules
• NIX - North China India Express
• MAX – Middle East Asia Express
• MIX - Mediterranean India Express
• GIA – Gulf Indian-Subcontinent Africa Service
• AFA – Africa Far-East Asia Service
Feeder and Inland Routing
• In Emirates Internet website
Routing Table
• In Intranet Emirates Knowledge Bank
Country Information of India
Competitors
• Understand where we are
• Our Strengths and Weaknesses
• Shipping news
• Emirates News Room in Intranet
• Emirates Knowledge Bank in Intranet
Country Information
• Knowledge and Experience Sharing
• Understand the counter parts
• Provide support to customers
• Exploring the globe
• Emirates Knowledge Bank in Intranet
Bill of Lading Basic Knowledge
1. B/L functions
2. B/L types
3. Terms and Conditions
4. Clauses
5. Switch B/L
1. Bill of Lading Functions
• Main document in international maritime transport
• Contract of carriage : transport service provided,
goods shipped, carrier’s responsibility, etc
• Receipt of cargo by carrier
• Document of title : lawful holder of B/L and cargo
• Negotiable instrument when consigned as “to
order”
2. Bill of Lading Types
• Negotiable B/L
Consignee is “To Order” or “To the order of ….”
Transferable with proper endorsement
• Non-Negotiable B/L
Consignee is clearly nominated by name
Straight B/L and not transferable
• Sea waybill
Not a title of document and not transferable
“To order” is absolutely unaccepted
Presentation of Sea Waybill is no proof of identification
2. Bill of Lading – Transport mode
• Direct B/L or Port to Port B/L
Carrier is only responsible from port of loading to port of discharge
Place of receipt and place of delivery must be crossed out or
Load port and discharge port must also be inserted in the Place of Receipt and
Delivery boxes
• Combined B/L
Place of receipt and Place of delivery must be filled in
Two or more transport methods
Carrier is responsible from place of receipt to place of delivery
• Multimodal B/L
DON’T issue multimodal B/L
ICC Multimodal B/L – liability is not governed by Hague-Visby rules
• Throught B/L
A contract of carriage involving more than one carrier.
2. Bill of Lading – Time of issue
• Shipped B/L or On Board B/L
Cargo has been loaded on board the vessel
The on board date must be the date when loading began
Must not be dated earlier or later
• Received B/L or Receipt for Shipment
Carrier has received the cargo, regardless of the status of loading
Must not be dated or issued before the goods are in Carrier’s custody
Warning on “Shipped On Board” endorsement :
Unless otherwise stipulated in the L/C, the UCP 500 no longer requires "Shipped
on Board" endorsements to be signed or authenticated. This makes it even
easier for forgers and fraudsters who ask for "Received for Shipment" Bills of
Lading and add their own "Shipped on Board" endorsement with counterfeit
stamps to produce forged documents afterwards.
3. Standard B/L Terms and Conditions
• On the reversed side of each original B/L
• The legal responsibilities and liabilities of the parties
on the contract of carriage
• Absolutely CANNOT be waived or revised unless Line
gives formal authorization in writing
Critical Terms to be addressed:
Clause 21.2 : Under deck stowage
Containers may be stowed on deck or under deck at the
Line's discretion. An "under deck stowage" clause
requested by a Merchant must not be inserted on the
Bill of Lading, unless approved by the Line (see clause
26).
Containers may be pre-/on-carried on board of feeder
vessels with limited space under deck. When
commercial feeder vessels are employed, stowage
positions are not influenced by the Line.
Clause 8 : Line's right to tranship
Provided the cargo is carried in containers and the entire transport is covered by
one Bill of Lading, such containers may always be relayed from one vessel
to another at the Line's discretion.
With reference to the "UCP 500" [Uniform Customs and Practice for
Documentary Credits, 1993 Revision, ICC Publication No.500] which
contains the basic rules for issuing Letters of Credit, such transferring of
containers (covered by one and the same Bill of Lading) from one vessel to
another vessel is not considered as "transhipment"
UCP 500, Article 23.d:
Even if the Credit prohibits transhipment, banks will accept a bill of lading
which:
indicates that transhipment will take place as long as the relevant cargo is
shipped in container(s), trailer(s) and/or LASH-barge(s) as evidenced by the
bill of lading, provided that the entire ocean carriage is covered by one and
the same bill of lading,
and/or
incorporates clauses stating that the carrier reserves the right to tranship.
Clause 16 : Delayed cargo arrival
The Line does not ensure that cargo/containers shall arrive at destination
at any particular time.
Clause 3 : Detention clause
Merchants occasionally wish to delete this clause to comply with L/C
requirements.
This clause must be on the Bill of Lading however, otherwise discharge
port agents cannot collect the relative charges from the Consignees.
The Line is not in a position to delete the detention clause on the Bill of
Lading.
Clause 23 : Consignee's obligation to take delivery
Consignees shall take delivery of their cargo at destination within the
designated time as per the Line's terms and conditions.
Clause 17 : Line's lien on cargo
The Line has a lien on the cargo and is therefore entitled to retain the
goods at destination until all "collect" freight/charges due by the
Consignee are paid.
Exceptions:
The Line has no lien on cargo which is consigned to a receiver who has
paid all "collect" freight/charges for this shipment, but has still
outstanding payments for an earlier shipment where the agent did not
exercise the Line's lien
The Line has no lien on cargo when freight and/or charges are "prepaid"
In the case of a dispute between the Merchants, the Line cannot retain
the goods on the Shipper's behalf once the Consignee has presented
an original Bill of Lading duly endorsed to him. In such cases the
Shipper may obtain a court order at the discharge port (or place of
delivery), instructing the Line not to release the goods to the
Consignee.
General Average securities:
The goods can be retained if the Consignee has not provided an
appropriate General Average security.
Other clauses on B/L body:
• "Shippers load, stow and count" for FCL/FCL shipment
• "Said to contain" for FCL/FCL shipment
The Line is not responsible for the condition/quantity of goods inside the
container (reference is made to the clause "Shipper load stow and
count”) but for the transportation from one container yard at the load port
to one container yard at the discharge port
•
The Ship is not of an Israeli flag and will not call any Israeli ports,
waters or territories and is not entered into Black Listed Arabic
Countries
• "Shipper's Own Equipment" or "S.O.E."
• A standard “Goods in Transit to…” Clause:
“Goods in Transit to Gdynia, Poland – The contract of carriage /
affreightment evidenced by this bill of lading shall be accomplished /
terminated as soon as the containers / goods are delivered / discharged
at Hamburg, Germany. Thereafter, delivery of the containers / goods to
Gdynia will be at the risks and expenses of the consignees or legal
holders of the bill of lading. In any event, the Carrier is absolved for all
liability whatsoever for onwards delivery of the containers / goods.”
Switch Bill of Lading (Triangle business)
• First set Bill of Lading is between initial exporter and the trader
(middleman)
• The Trader does not want the direct communication between
initial exporter and the buyer
• Second set Bill of Lading is needed
• The Trader must surrender First set Bill of Lading and provide
formal switch bill request to carrier
• Only Parties (i.e. Shipper , Consignee and Notify Party) are to be
switched on the Second set Bill of Lading
• Carrier must ensure to cancel the First set Bill of Lading before
releasing the Second set
• It is absolutely unacceptable to have two sets of Bill of Lading for
the same shipment
• Details on Documentation Manual Chapter 3.2
Bill of Lading FAQ
B/L Clause can be shown on B/L Body without LOI & Guarantee from Customers
Port
DAMMAM
JEBEL ALI
BANDAR ABBAS
IN GENERAL
IN GENERAL
IN GENERAL
IN GENERAL
IN GENERAL
IN GENERAL
B/L FIELD
b/l body
b/l body
b/l body
b/l body
POL
POD
Notify party
SWB
Consignee
IN GENERAL
Consignee
Clause or Name
DAMMAM BONDED RE-EXPORT ZONE
JEBEL ALI FREE ZONE
IN TRANSIT TO XXXXXX (XXXXX being the place of final delivery)
NAME OF FORWARDING AGENT AND ADDRESS
Name of POL PORT, COUNTRY NAME (eg. Kuwait port in Kuwait)
Name of POD PORT, COUNTRY NAME (eg. Shanghai port in China)
Notify party name and address should be located at POD country
must comply with Manual.
"To order" cannot be accepted in Seaway bill
"To order" - OBL or Bank Guaranty is a MUST for cargo release. Please
refer to Manual.
Remarks :
Note 1 :
“Goods in transit to (insert the place of final destination)
– The contract of carriage/affreightment evidenced by
this Bill of lading shall be accomplished/terminal as soon
as the container/goods are delivered/discharged at
(insert the name of the discharge port). Thereafter,
delivery of the container/goods to (insert place of final
destination) will be at the risks and expense of the
consignee or legal holders of the Bill of Lading. In any
event, the Carrier is absolved of any liability whatsoever
for any onward delivery of the container/goods.”
Remarks
need to accompany with note 1
need to accompany with note 1
need to accompany with note 1
WHY are we as a carrier so fussy about the
details in B/L?
• Goods can be transferable through negotiable B/L
• Buyer relies implicitly upon certain details shown on B/L
• Carrier is legally prevented from denying the accuracy of
any detail which he has acknowledged on B/L
• Any carrier, who knowingly shows incorrect details on
B/L to comply with Letter of Credit requirement, joins the
Shipper as a party to fraud on the Consignee
• Examples : the temperatures of reefer cargo, onboard
date, port of loading, exception clauses, etc
Claims
• Emirates Knowledge Bank
• P&I
• General Average
• Cases
• Shipment delay
• Seaway bill
• Onboard date on OBL
• FAQs
Line's Liability and P&I Club
The Line has arranged the following insurance
covers for its time/slot-chartered vessels for all
risks under the Contract of Affreightment and
Charter Party, i.e.:
• Cargo claims, fines, personal injuries,
deviation, etc.
• Liabilities with stevedores, etc.
• Damage to time chartered vessels and/or
their equipment.
These risks are covered with The UK P&I Club
(P&I = protection & indemnity).
General Average
• An ancient principle of Equity
• An unwritten, non-statutory international maritime
law
• Universally recognized and applied
• On the principle that vessel and goods are parties to
the same venture
• Share the exposure to the same essentially maritime
danger
• A sacrifice or an expenditures
• For the benefit of the whole venture
• For uniformity, the York/Antwerp Rules are now
incorporated in most contracts of affreightment
General Average
For all time- or slot chartered vessels carrying
cargo under a Line Bill of Lading, when the vessel's
Master/owners declare General Average, this
should be reported to Emirates Shipping (HKG) Ltd
who will handle and guide the agents in respect of
General Average sacrifice and General Average
formalities/procedures which the Line's agents are
required to handle/follow for all cargo shipped
under the Line's Bills of Lading.
Container Control will provide General Average
securities for all their containers via the
underwriters TT-Club (Through Transport Club).
General Average
What to do if shipowners declare General
Average?
For cargo interests [shipper/consignee] – they should
inform the matter to their cargo underwriters
immediately if the cargo was insured. In such case, the
cargo underwrites will sign the necessarily guarantee
to shipowners so to comply with the procedure for
cargo release. Otherwise, the shipper/consignee need
to pay a cash deposit to the General Average
Adjusters appointed by the shipowners before cargo
release.
Case of our own company:
Booking Release
A shipper provided booking request of 1x40’RH of fresh
apples from port A to port B on Vessel X on 1 April 2008.
The same shipper placed booking of 2x40’RH of frozen
mixed vegetables from port A to port B on Vessel X on 3
April 2008. We wrongly mixed up these two requests
and delivered the second booking’s reefer container to
shipper for stuffing fresh apples.
Shipper claimed for the cargo damage !
Case of other carriers :
COD (change of destination)
A consignee presented the freight prepaid OBL
requesting change of destination from Kuwait to
Jebel Ali before the shipment arriving Jebel Ali.
LOI was signed by consignee and the destination
office agreed to check Principal for any refund of
rate difference. Principal rejected the refund.
Consignee claimed for rate difference !!
COD (change of destination)
Based on B/L term clause 15, carrier has no liability to revise
freight rate under this condition.
Some carriers would provide exceptions based on the actual
situation, cost and possible dead freight.
The initial freight payer may not be the COD requestor but the
lawful holder of OBL has the cargo right on hand.
Carriers can arrange possible refund to COD requestor but
the initial ocean freight rate level can not be disclosed to non
freight payer.
COD SOP can be found in Knowledge Bank.
Cases of other carriers:
A carrier issued the letter to shipper per quoted.
Quoted.
Dear Mr xxx (shipper),
Regarding your shipment under B/L xxx, we wish to
advise you that owing to the internal reasons of our
company, your shipment arrival date has been delayed
resulted in your goods off-sales season, as well as
difficulties in the bank negotiation. …….
Unquoted.
Shipper used this statement to sue the carrier in court !!
Cases of other carriers:
Sea waybill
A carrier released negotiable B/L to a shipper upon
shipping instruction. After then, the shipper
requested to change it to Sea waybill. The carrier
approved the request with the consent of the Lines
and changed the system bill type to Sea waybill and
confirmed the shipper. With half day time, the
shipper changed his mind again to cancel the request
and keep the initial negotiable B/L. The carrier did
not change the bill type in system and destination
released cargo as per sea waybill.
Shipper sued the carrier for cargo release without
original B/L !!!
Cases of other carriers:
Onboard Date
Quoted.
A shipper requested a carrier to back-date one day
for the shipment onboard date on the OBL due to L/C
requirement. The shipper claimed that they urgently
needed the OBL for bank negotiation and agreed to
provide LOI to carrier. The carrier finally approved
the back-date of shipment on OBL.
Unquoted.
Consignee sued the carrier for mis-representation !!!!
Onboard date on OBL
The correct date is the date of loading/shipment. Normally, the date
of issuance is deemed to be the date of loading, unless the Bill of
Lading is claused "shipped on board on .... (date)":
Antedating / postdating Bills of Lading:
Under NO circumstances should Bills of Lading be antedated or
post-dated. This is construed as fraudulent misrepresentation.
“The Saudi Crown” [1986] 1 Lloyd's Rep. 261:
"The issuing of an ante- or post-dated Bill of Lading is a
misrepresentation and constitutes fraud upon the banks and/or
endorsees or third parties as bona fide [acting in good faith]
holders of the original Bill of Lading or those who are otherwise
involved in negotiating the bill or property in the cargo".
Claims FAQs
•
What common international rules govern marine transport?
And what is the time limit to commence legal proceedings?
Hague-Visby Rules : 1 year
Hague Rules : 1 year
Hamburg Rules : 2 years
PRC Maritime Code : 1 year
United States Carriage of Goods by Sea Act
Counted from date of good delivery or good should have
been delivered
•
Can the Cargo Interests pursue the actual carrier for
consequential loss and / or market loss and / or loss of
profit?
B/L Clause 16 – The Line does not ensure that
cargo/containers shall arrive at destination at any
particular time and not liable for any “economic loss”
Claims FAQ
•
Can the Cargo Interests pursue the actual carrier
for delay in the event of port strike or lockout?
For sea carriage, the delay caused by port
strike or lockout falls under the exemption of
Hague-Visby Rules that carrier may not be
liable.
•
The shipment was discharged by the actual carrier
during the voyage without notifying the shipper for
transhipment and shipment was delayed. Does
the Actual carrier has any obligation to inform
shipper of transhipment of cargo? Can shipper
lodge claims for compensation due to delay?
B/L Clause 8 and 16 – As long as carrier
delivers the cargo within reasonable time, the
carrier will not be liable. As to what is
regarded as reasonable, it depends upon,
amongst other things, the nature of the cargo
and the actual time of delay involved.
Other FAQs
•
How many freetime for detention at other locations and the
charges? Why can’t we offer more freetime to customers?
You can refer to the Knowledge Bank > Tariff
Equipment is the company’s inventory to generate business
and profit. The longer freetime to the customers, the higher
the opportunity cost. Besides, we do have actual costs and
expenses on maintaining the equipment.
•
What we have to do if we really want to help to VIP
customers for additional freetime?
You can refer to the guidelines in DWS
You must provide supportive reasons
You must properly complete the input in DWS
You must get Lines’ approval in DWS
Other FAQs
•
How many channels customers can use to keep track their
shipment status?
Phone inquiry
Email to Customer Service Department
In Person
Email tracking in Internet
Cargo Tracking in Internet
Infobox in Internet
•
Why our schedule is always not stable?
Influenced by numerous factors, not limited to port
condition, weather, partners, vessel, feeder, etc
It is always our main objective to maintain the schedule
reliability by any efforts
Important to keep customers informed of latest update
More on Operations
• Importance to share latest update with all
stakeholders
• New platform to consolidate related news
• Operations Update in Intranet
• Together with the weekly transshipment
• Local offices should keep track on the update
• To timely contact the customers for the changes
• To coordinate with Trades and Operations if any
special care is needed
Group Sharing
• Any suggestions on Country Information in Knowledge
Bank?
• Any suggestions on the topic of future product
knowledge training?
• Any cases or problems in routine work task?
• What other supports needed?
THANK YOU !
Look forward to your continuous effort and
support in the
Training !